Firm: Kohlberg Kravis Roberts & Co.
Fund: KKR Energy Income and Growth Fund I
Amount raised: $2 bln
Aimed at North American unconventional oil and gas development, the fund will combine joint-venture drilling investments for future growth with legacy assets to deliver both current income and capital appreciation, along with commodity exposure as protections against inflation. Other potential investments include acquiring mineral rights and royalties, and pursuing opportunistic investments.
“The energy revolution has created an unprecedented opportunity set, and we are seeing many ways to partner with companies to help develop these important resources,” Marc Lipschulz, KKR’s global head of energy and infrastructure, said in a prepared statement.
KKR said it has already deployed $350 million of equity in eight investments under the strategy for KKR Energy Income and Growth Fund I.
All told, KKR manages $8.7 billion in energy and infrastructure assets, according to the press release. It has invested or committed about $4.3 billion to oil and gas investments since 2009.
The new fund comes after KKR closed three funds during its fiscal fourth quarter ended Dec. 31, with about $12.5 billion in total commitments: North America Fund XI LP with $9 billion, Real Estate Partners Americas LP with $1.5 billion and Special Situations Fund LP with $2 billion.